Sensex Recovers 690 Points, Ends Lower By 64 Points

The equity benchmarks closed flat with negative bias following negatives from global peers and with concerns over a spike in Covid cases which crossed the four-lakh mark during the weekend. Further, the data from PMI (Purchasing Manufacturers Index) which revealed a slowdown in production and new orders also weighed the sentiment on Monday, May 3, said, experts.

"Sentiments were under pressure after India's manufacturing sector activity was largely flat in April, as rates of growth for new orders and output eased to eight-month lows amid the intensification of the COVID-19 crisis," said Narendra Solanki of Anand Rathi Shares & Stock Brokers. 

After a gap-down opening, Metals and FMCG extended the support to the indices and led the Sensex to close lower by 63.84 points at 48,718.52, while the Nifty-50 closed with a gain of 3.05 points at 14,634.15. The 30-share pack Sensex ended the day with 17 advances and 13 declines with Titan Company (-4.53 per cent) and Reliance (-1.89 per cent)being the top laggards.

However, shares of Adani Ports (+4.29 per cent), SBI Life Insurance (+3.22 per cent) and Tata Steel (+2.97 per cent) were among the top gainers of the index. 

Among the sectors, FMCG and Metal were the top-performing sectors as they gained 1-2 per cent each in the day's trade and led the indices to clear their early losses. Shares of Varun Beverages and Marico were the top gainers in the FMCG space as they added 5-8 per cent on strong Q4 earnings. Banks, Financials, and Energy were the top losers among all other sectors. 

What will drive the markets further?

As per experts in the market, the ongoing pandemic and updates from the Covid situation from the states and centre will influence the market in the coming days. The macroeconomic data and earnings this week will be also monitored by the participants and a decline in these above factors will keep the markets on the edge. 

However, the election results are not likely to create any impact on the movement as the effect of the same is temporary and will be forgotten in a couple of days, said analysts. 

''The election results are unlikely to have any impact on the markets. The news value won't last more than a few hours. The major determining factor will be the rising COVID-19 cases and how governments (both central and states) are going to address this tragic health crisis," said VK Vijayakumar - Chief Investment Strategist at Geojit Financial Services. 

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services said that the markets are likely to be range-bound as the fear of the continuous rise in covid cases and extended lockdowns in various states, are likely to cap the upside.

Investors would keenly track the Auto monthly sales data which would keep the market on the edge, while on the global front, key macro-economic data like US Non-Payroll Farms data, US PMI data, and BoE monetary policy would be kept an eye on, Khemka added.